Suppose the demand function for cable TV service is given by QCTV = 15 -0.25xPCTV + 0.0005xM + 0.3xPSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. We can see that A. Cable TV service is an inferior good B. Cable TV service is a normal good C. Cable TV service and satellite TV service are complements D. Cable TV service and satellite TV service are unrelated to one another

Suppose the demand function for cable TV service is given by QCTV = 15 -0.25xPCTV + 0.0005xM + 0.3xPSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. We can see that A. Cable TV service is an inferior good B. Cable TV service is a normal good C. Cable TV service and satellite TV service are complements D. Cable TV service and satellite TV service are unrelated to one another

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 19QP

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